WI1 trade ideas
$WGO Winnebago overbought, wait for pullback.Huge beat on earnings for NYSE:WGO , and a massive 15% move yesterday, which has now resulted in oversold conditions, wait for a pullback and avoid a fomo entry at this level.
13.5 P/E ratio very reasonable
Short interest 13.7% could help sustain the rally.
Earnings transcript
In summary, our strategic transformation over the last 4 fiscal years has led to a doubling of revenue, a tripling of both adjusted EBITDA dollars and free cash flow and a sizable increase in the enterprise value of our organization, and this is before our Newmar acquisition is factored in. Shareholders have benefited from our team's work and our communities have been strengthened. In 2019, we will have given away 5x more dollars in that annual period than what we did in 2015. And most importantly, our employees are creating a stronger presence in impacting the communities with an exponential increase in hours volunteered and talents offered. This is an exciting place to be.
In 2019, our annual revenues of $2 billion, a record net income of $112 million and RV share gains were truly remarkable considering the headwinds, tariffs, trade constraints, economic uncertainty, reckless partisan politics, et cetera that challenged the industry this year. As notable as those results were, they were only made possible because of the outstanding contributions from all of our hard-working Winnebago Industries employees, nearly 4,700 of them. We are ever thankful of their efforts over the year and for embracing our vision to establish our company someday as the leading provider of outdoor lifestyle solutions.
Company profile
Winnebago Industries, Inc. engages in the design, development, manufacture, and sale of motorized and towable recreation products along with supporting products and services. It builds motorhomes, travel trailers, fifth wheel products, and transit buses. It operates through the following segments: Motorhome, Towable, and Corporate and All Other. The Motorhome segment comprised of products that include a motorized chassis as well as other related manufactured products and services. The Towable segment consists of products which are not motorized and are generally towed by another vehicle as well as other related manufactured products and services such as Winnebago and Grand Design towables. The Corporate and All Other segment includes the Winnebago specialty vehicles and Chris-Craft marine operating segments as well as expenses related to certain corporate administration expenses for the oversight of the enterprise. The company was founded on February 12, 1958 and is headquartered in Forest City, IA.
WGO - will it breakout again?Notes on WGO (Positive and negative)
WGO has been on IBD50 several times.
Heavily owned by institutions.
SWS has it undervalued at $42, future cash flow estimates $80/share.
Looks to be forming a consolidation period, generally 7-8 weeks is good timeframe.
RSI line is pretty low at this point.
Winnebago Industries Board of Directors Approve Quarterly Cash Dividend of $0.10 Per Share in March
WGO - BullishWGO is looking bullish on the weekly chart, as the MACD has crossed over on higher bullish volume, as of 5/30/217. WGO rejected the 200dma on 5/31/2017 and rebounded over 10% as of today.
Although the stock is channeling in a bearish trend, the weekly bullish volume may invalidate the channel and finally break it at the .382 FibR on the weekly at $30, representing a 4% profit from today’s close.
